I'm a bit puzzled by this, I'm not using any mods and have the lastest patch but once I land on Telos for the first time the character models, the faces really degrade in quality. I have all the settings turned up and yet the character models look worse that what they do if I turn down the texture quality prior to landing on Telos. The texture quality is just awful.

 

This is before Telos

 

 

And this is after

 

 

If anyone has any idea whats going on? It's driving me nuts

To my eyes it just seems as though the differences are down to the lighting on Telos, rather than a problem with the models. You'll probably find that things look better in different areas.